ENERGY

Kuwait oil minister quits ahead of grilling on $2.2bn Dow penalty

Kuwaiti oil minister Hani Hussein resigned, apparently to avoid questioning over a $2.2bn penalty payment to Dow Chemical. (File photo: AFP)

Hani Hussein, oil minister in OPEC member Kuwait, has resigned apparently to avoid being questioned in parliament over a $2.2-billion penalty payment to US Dow Chemical and other alleged irregularities, a newspaper reported Monday.

Hussein told Al-Qabas daily he hopes "the new oil minister will provide the political cover for the massive change" introduced to the oil sector last week.

"I am comfortable by all standards, I have performed my duties... I hope the oil sector will be relieved of political pressures," he told the newspaper.

Al-Qabas said an official announcement of the minister's resignation will be made later on Monday.

In an unprecedented move last week, Hussein reshuffled the oil sector, changing a number of leading executives at national oil company Kuwait Petroleum Corp. and the chiefs of all eight KPC subsidiaries.

Hussein, a veteran oil executive and the former KPC chief, has been oil minister for the past 15 months.

After the election of the new parliament in December, Hussein was regularly targeted by a number of MPs over a variety of alleged violations.

A lawmaker filed to grill him in February but parliament agreed to delay the debate until the next parliamentary term in late October.

A second request to grill the minister was filed two weeks ago after the oil-rich Gulf state paid $2.2 billion to Dow Chemical as a penalty for pulling out of a $17.4-billion joint venture in December 2008.

The penalty was ordered by the International Chamber of Commerce, acting as arbitrator.

The move plunged Kuwait into renewed political crisis after two other MPs filed another request to grill the interior minister. The government boycotted parliament sessions on May 14 and 15 and all ministers offered to resign.

Al-Qabas said Hussein was given the choice of facing the questioning in parliament due for Tuesday or resigning, and he chose the latter.

SHOW MORE
Last Update: Monday, 27 May 2013 KSA 11:22 - GMT 08:22
Top
BREAKING NEWS

Send to a friend

Close
Kuwait oil minister quits ahead of grilling on $2.2bn Dow penalty
Friend's name:
Friend's Email:
Sender's name:
Sender's Email:
Captcha Code
How are we doing?
X

How are we doing?

Name Name *
Email Email *
Country Country
Message Message *
Maximum 550 words allowed